Racing from cyberspace to the marketplace(2)

According to the China Gaming Industry First-Half Report for 2014, the country has more than 400 million video gamers on PC, mobile, and console platforms, and most of them are consistent e-sports fans.

The report, which is published every six months by the China Audio-Video and Digital Publishing Association and IDC Insights, said China's video game industry earned 49.6 billion yuan ($8 billion) in the first half, a 46 percent increase from the same period in 2013. Observers are now eagerly awaiting the full-year figures, which will be released at the end of December.

On Oct 19, more than 27 million fans watched South Korea's Samsung White beat China's Royal Club in the World Championships final of League of Legends, a hit title developed by Riot Games of the US. The figures are impressive, given the average 15.5-million-per-game TV audience for the NBA's 2013-14 season final series.

China's lifting of a 14-year ban on foreign video game consoles earlier this year has been seen as a further sign of the increasingly positive official attitude toward the e-games industry. That's led observers to predict further market growth, a forecast underlined by report called China's PC Online Games Market, published by Niko Partners, in which the research company estimates that over the next five years, revenue growth in the market will rise by $2 billion a year.

Fleeting fortune

The boom in online viewers has also encouraged major streaming websites to sign high-profile ex-players as full-time commentators to attract even more fans.

In September, Wei Handong, a retired gamer who played League of Legends competitively with Team WE in Shanghai, signed a contract with the high-definition gaming platform zhanqi.tv to provide online, real time commentary on strategies as he plays. Wei's contracted 90 hours a month earns him 5 million yuan a year, a far cry from the 20,000 yuan a month he garnered in his peak as a professional gamer with WE.

Meng Yang, a retired e-sports gamer who now works with the online development department of IT giant Tencent, said: "Former professional gamers can snare lucrative deals with broadcasting sites, which attract fans by signing star athletes who contribute to the rise in viewing figures as well as ad sales.

"However, these deals don't last long and individuals can be replaced overnight, so most average e-sports gamers have to consider a shift into other fields after retiring from their short professional career. That can be a struggle," he said.

According to Jian Ai, manager of OMG, a club in Shanghai that specializes in League of Legends, the income gap has also prompted active professional gamers to ask for a wage raise, which has heaped extra commercial pressure on the clubs' operations.

"Most of the clubs are running at a loss because it's hard to establish sustainable business models other than simply relying on prize money and funds from investors.

"Although they're attracting some limelight in the mainstream, e-sports remain less appealing for sponsors outside the IT and telecommunication sectors," Jian said.

In an attempt to forge a positive public image for its players, OMG, which has a 60-member team of personal care assistants, logistics support, marketing and public relations crews, has been actively hosting team-building and branding events since it was established in 2012.

On Nov 18, the club launched the OMG Star Will Fund in conjunction with the Shanghai Sports Development Foundation. It's the first charity event initiated by a Chinese e-sports club to help improve "digital education", or the use of computers and digital tools in rural areas.

"By doing this, we hope to show society the positive side of the e-sports industry. Hopefully, the fund will help people and also benefit our players' future careers," Jian said.